2 0 1 8
N E W S M O N T H L Y
Back to School With the ‘Magic School Bus’
T
HESE TWO HAPPY STUDENTS are
O F T H E
in action with the book. We’ll post a photo album on the Magic School Bus page on the Academy website (along with as much, or as little, information about your young reader as you’re comfortable with) to show the impact of this book and how it is inspiring interest in our profession. The Academy thanks our members for supporting our efforts at promoting interest in the importance of being an actuary in school-age children.
Transparency and Public Participation Remain Core Values —and Policies—of the Academy
3 IFRS Seminar Covers Long-Duration Contracts
Most fundamentally, it is important for Academy members to know that since the policy revision guests have continued to observe at both Actuarial Standards Board (ASB) and ASB pension committee meetings and will undoubtedly continue to do so. The Academy’s commitment to transparency remains unchanged. Nevertheless, we understand that some have signed the petition favoring a bylaw change for the best of motivations: they share the Academy’s values of disclosure, participation, and accountability.
3 Breakout-Session Info for Annual Meeting and Public Policy Forum
What we hope they, and others, will come to understand is that the Academy’s current policy was developed solely to further those values by carefully balancing the need for public participation with the need for expertise, disinterestedness, and candor. We refer to that balance as “orderly transparency.” Nothing is more important to our profession or the Academy than the public’s confidence in the robustness of the professionalism of actuaries who work in all fields of practice, including pension systems SEE KNOW THE FACTS, PAGE 6
4 Academy Officers, Regular Directors
4 Pension ASOPs Draw Wide Response
A C T U A R I E S
processes and public participation in the development of actuarial standards lie at the heart of the Academy’s mission. So when a petition campaign mischaracterizes a revision to the Academy’s policies governing guest attendance at certain meetings, it’s important to set the record straight. While only a small fraction of Academy members have signed the petition, we believe the values at stake are so important that we want to address them thoroughly and prominently.
O F
T
RANSPARENCY OF OUR
A C A D E M Y
Know the Facts
A M E R I C A N
back to school after a great summer and a wonderful gift from their grandfather, Jerry Brown, past president of the Society of Actuaries, of our Magic School Bus book about an actuary in action. We want to recognize those who have gifted the book to students, as the Academy did with all students in Grades 3–5 in the DC Public Schools, and thank you for planting the seeds for future generations of actuaries. We also want you to know the Academy will not continue actively promoting the availability of our sponsored book, The Magic School Bus Takes a Risk: A Book about Probability, as we have now filled more than 2,000 orders from individuals and organizations since its release in June. Our stocks are low, but we hope some corporate sponsors may pick up where we have left off and see what all of you who have ordered the book see. Amelia and Owen (pictured), have clearly been inspired—on his first day of school in late August, Owen told his third-grade teacher that he wants to be an actuary when he grows up, and he told her what they do! To keep the interest alive of those you’ve shared the book with, we’d love to have a picture of the youngsters
Actuarial UPDATE
T H E
A U G
C A L E N D A R SEPTEMBER 5–7 Casualty Loss Reserve Seminar (CLRS) & Workshops—Anaheim, Calif.
Academy NEWS Briefs
25 Webinar: P/C Public Policy Update—Fall 2018
OCTOBER 17 Professionalism Webinar: The Anatomy of the ASOPs
NOVEMBER 1–2 Annual Meeting and Public Policy Forum, Washington, D.C. 4–8 Life and Health Qualifications Seminar, Arlington, Va.
DECEMBER 6–7 Seminar on Effective P/C Loss Reserve Opinions, Chicago
Volunteer Survey Draws Large Response
M
ORE THAN 600 MEMBERS
participated in the Academy’s annual volunteer survey this month, which members use to indicate their interest in volunteering for an Academy committee, including the Actuarial Standards Board and the Actuarial Board for Counseling and Discipline. During the next few months, volunteer leadership and staff will contact survey participants whose skills and interests meet a committee’s needs about joining a committee. Volunteers are essential to the Academy’s work—many thanks to all who completed the survey.
Recently Released
T
HE AUGUST HealthCheck covers the
For a list of all previous and upcoming Academy events, please visit the Academy’s online Events Calendar.
To continue receiving the Update and other Academy publications on time, make sure the Academy has your correct contact information. Academy members can update their member profile at the member login page on the Academy website.
www.actuary.org
Health Practice Council’s presentations at the NAIC Summer 2018 National Meeting in Boston, including a report by the Joint P&C/Health Bond Factors Analysis Work Group, and updates by the Individual and Small Group Markets Committee and the Long-Term Care Valuation Work Group. Also included are legislative and regulatory updates, including actions by the Centers for Medicare & Medicaid Services.
The Retirement Report summer issue covers the Academy’s lifetime income retirement forum, held in Washington, D.C., in late July. Also covered are the Academy’s testimony before the Department of Labor’s ERISA Advisory Council in mid-August, and state and federal legislative and regulatory activity.
ISTOCK / CREATIVE-TOUCH
28 Webinar: Practical Considerations in Completing and Using Form F Efficiently and Effectively
Public Employment Opportunity
T
HE SOCIAL SECURITY dministration is seeking to fill A
a position in its Office of the Chief Actuary. The deputy chief actuary for short-range actuarial estimates is responsible for planning, directing, and coordinating the development of the short-range cost estimates for all Social Security programs both under current provisions and proposed changes in law or regulations. The closing date is Sept. 4. For more information or to apply for this position, click here. The Academy has long supported government employers that are seeking to hire qualified actuaries. See our Public Employment Opportunity Posting Policy for more information.
A c t u a r i a l U P DAT E AU G U S T 2 0 1 8
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Academy NEWS IFRS 17 Seminar Covers Long-Duration Contracts
T
HE ACADEMY’S RISK MANAGEMENT AND FINANCIAL
Reporting Council (RMFRC) sponsored a 2-day Seminar on Implementing International Financial Reporting Standard 17 (IFRS 17) for Long-Duration Contracts, which drew an engaged audience to Washington, D.C., Aug. 29–30. The groundbreaking seminar on IFRS 17—designed for financial reporting actuaries who will be working on implementing the new standard for long duration insurance contracts— included presentations and an interactive workshop. William Hines, a RMFRC member and an observer to the International Accounting Standards Board’s (IASB) IFRS 17 Insurance Contracts Transition Resource Group, was a speaker, giving an update on emerging developments on the IASB’s IFRS 17 Transition Resource Group . “The new accounting requirement under IFRS is highly principles-based, which is going to require the exercise of a lot of judgment by both accountants and actuaries,” Hines said prior to his presentation. The seminar was designed “to highlight where actuaries are going to need to be applying judgment, and some of the basic considerations as Academy members work to implement
Hines presents at the seminar Aug. 30
this new accounting standard.” Other speakers covered topics including general measurement models vs. variable fee approaches, risk adjustment, other comprehensive income (OCI), contract service margins (CSM), reinsurance, transition issues, and cash flows and contract boundaries.
Early Registration Deadline Is Days Away for Annual Meeting and Public Policy Forum
T
HE FINAL OPPORTUNITY FOR
discounted registration rates is available through Sept. 7 for the Academy’s 2018 Annual Meeting and Public Policy Forum, to be held Nov. 1–2 in Washington, D.C. Breakout sessions will cover the latest in top public policy and professionalism news, including a look at government-backed P/C insurance programs, the experiences regulatory and life insurer perspectives on 2017 principle-based reserving actuarial reports for 2017, multiemployer pension reform, and the Center for Consumer Information & Insurance Oversight (CCIIO). Other agenda highlights include a professionalism plenary with an interactive game show, what promises to be a breaking new analysis in a keynote address by political analyst Charlie Cook of the Cook Political Report, and a murder-mystery dinner entertainment to test your deduction skills. The Annual Meeting and Public www.actuary.org
Casualty SS Government-backed P/C insurance programs SS Climate risk and insurance SS New economy and insurance Health SS Dialogue with the CCIIO SS Long-term care insurance SS Health care reference pricing
Policy Forum is also an excellent way to get continuing education (CE) and network with your colleagues. Register today and save.
Practice-Area Breakout Sessions The following breakout sessions will be offered at the Annual Meeting and Public Policy Forum. Please visit the breakout session page for more information.
Life SS Actuarial perspectives on 2018 PBR actuarial reports SS The Impact of the 2017 Tax Cuts and Jobs Act on life insurers SS Pension-risk transfers Pension SS Strengthening our retirement system SS The other side of the coin—how employers view the retirement programs they sponsor SS Tasked with saving a system in c risis— the Joint Select Committee on Solvency of Multiemployer Plans.
A c t u a r i a l U P DAT E AU G U S T 2 0 1 8
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Academy Officer Candidates Announced; Board Election Concluding
T
HE ACADEMY’S NOMINATING
Committee reported on the slate of four individuals nominated for officer positions on the Board of Directors, also with terms beginning in November. In addition to D. Joeff Williams, nominated in April to serve as the Academy’s next president-elect, the nominees are: SS TOM CAMPBELL, to serve a third year as the Academy’s secretary-treasurer, a position that is elected annually by the Board for up to three consecutive terms. Campbell is also a member of the Committee on Qualifications and a former vice president, life; SS AUDREY HALVORSON, former Board member and vice chairperson of the Health Practice Council, to serve as vice president, health; SS ART PANIGHETTI, to serve as vice president, professionalism. Panighetti is a former Academy treasurer and a former vice president, life; and SS LISA SLOTZNICK, to serve as vice president, casualty. Slotznick, vice chairperson of the Casualty Practice Council (CPC), is in her second year of a three-year term as a regular director. Vice presidents serve two-year terms. The nominating process is designed to ensure that all candidates bring deep expertise, experience, and balance to the Board, and also significant knowledge of the Academy’s history, mission, and priorities. Per the Academy’s bylaws, this officer slate will be voted on by the Board at its annual meeting in October. Terms for all new board members will begin
Officers
Tom Campbell
Audrey Halvorson
Art Panighetti
Lisa Slotznick
Tim Geddes
Kenneth Kasner
Regular Directors
Lauren Cavanaugh
Andy Ferris
Nov. 1 at the completion of the Academy’s annual meeting.
Regular Director Candidates The Academy membership’s opportunity to vote for four candidates for open regular director positions on the Academy Board of Directors ends at 11:59 p.m. EDT on Friday, Aug. 31. The new regular directors on the ballot, who would take their place on the Board at the conclusion of the Academy’s annual meeting on Nov. 1, are: SS LAUREN CAVANAUGH, a member of the CPC and chairperson of the
Property and Casualty Risk-Based Capital Committee; SS ANDY FERRIS, a member of the Life Practice Council chairperson of the Contingent Annuity Work Group; SS TIM GEDDES, a Board member (2017–18), a member of the Pension Practice Council, and chairperson of the Pension Accounting Resource Group; and SS KENNETH KASNER, chairperson of the Actuarial Standards Board’s Casualty Committee. Visit the Academy Board Election Center for more information.
Pension ASOPs Exposure Draws Wide Response
J
ULY 31 WAS THE DEADLINE for comments on
100 comments in total for the
exposure drafts of proposed revisions of three pension actuarial standards of practice (ASOPs)—No. 4,
three exposures. The ASB has always welcomed and
Measuring Pension Obligations and Determining Pension Plan
relied upon comments received as a
Costs or Contributions; No. 27, Selection of Economic Assump-
part of its rigorous standards-setting
tions for Measuring Pension Obligations; and No. 35, Selection
process when revising, approving, and
of Demographic and Other Noneconomic Assumptions for
adopting ASOPs. As always, comments
Measuring Pension Obligations.
have been posted on the ASB website
The response to these exposure drafts was particularly robust; the Actuarial Standards Board (ASB) received about www.actuary.org
to encourage transparency for all stakeholders.
A c t u a r i a l U P DAT E AU G U S T 2 0 1 8
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Academy Presents at NAIC Summer Meeting
A
CADEMY VOLUNTEERS AND
representatives gave multiple presentations at the NAIC Summer 2018 National Meeting in Boston in early August. The Academy released a post-NAIC alert highlighting our activity at the meeting. Life practice issues raised at the meeting were discussed in an Aug. 24 webinar attended by about 250 people, and the Sept. 25 “P/C Public Policy Update—Fall 2018” webinar will recap property/casualty issues from the meeting as well as presentations on other current public policy topics of interest. A highlight of the Academy’s activity was the regulator-only professionalism breakfast and discussion forum on Aug. 4, which featured presentations by Past President Mary D. Miller, Actuarial Standards Board (ASB) Chairperson Beth Fitzgerald, and Actuarial Board for Counseling and Discipline (ABCD) member Godfrey Perrott, as well as Tom Campbell, a member of the Academy’s Committee on Qualifica-
tions. The Academy also presented on professionalism issues to NAIC’s Life Actuarial Task Force (LATF), Health Actuarial Task Force, and Casualty Actuarial and Statistical Task Force (CASTF). Senior Casualty Fellow Kevin Ryan gave CASTF an overview of the Academy’s Casualty Practice Council and Committee on Property and Liability Financial Reporting activities. Chris Trost, chairperson of the C-2 Work Group, gave an update on the group’s projects to the NAIC Life Risk-Based Capital (E) Working Group. Presentations were given by Joint P&C/Health Bond Factors Analysis Work Group chairpersons Lauren Cavanaugh and Tim Deno on a recently submitted report before the NAIC’s Investment Risk-Based Capital (IRBC), Health RBC (HRBC), and Property and Casualty RBC (PCRBC) working groups. The report focuses on indicated bond risk factors for the Property/Casualty RBC Formula and the Health RBC Formulas.
(L-R) Fitzgerald, Perrott, and Miller
Academy presentations to LATF included: SS Mary Bahna-Nolan, chairperson of the Life Experience Committee, discussed a recent the Delphi Study by the Society of Actuaries on accelerated underwriting, and VM-51 data elements. SS Laura Hanson, chairperson of the Life and Health Valuation Law Manual Task Force, gave an update on the plans to develop an improved and modernized valuation law manual, to be released this winter. SS Donna Claire, chairperson of the Principle-Based Reserve (PBR) Governance Work Group, provided an update on PBR adoption, noting the resources created by Life Practice Council, and plans to develop new resources, including the possibility of future workshops for regulators or others. SS Chris Conrad, vice chairperson of the Standard Valuation Law Interest Rate Modernization Work Group, presented an update on potentially modernizing the process of setting valuation interest rates for all non-variable annuities. . SS John Miller and Matt Coleman, co-chairpersons of the Annuity Reserves Work Group, presented an update on a possible exclusion test for non-variable annuities under a PBR approach. SS Paul Navratil, chairperson of the Longevity Risk Task Force, presented an update on the task force’s original field study to test the impact of longevity stresses on actual blocks of business. SS Members of the Life Reinsurance Work Group gave an update on the allocation of reinsurance reserve credits to the modeled reserve.
Academy Raises Concerns With NAIC Experience Period Proposal Past President Mary D. Miller submitted the Academy’s comment letter to NAIC Aug. 10 regarding the Casualty Actuarial and Statistical Task Force’s exposure draft related to the three-year experience requirement to be qualified to sign statutory statements. In those comments Miller shared the Academy’s view that the exposure draft describes an approach that will neither clarify nor improve the current requirement. Deno (left) and Cavanaugh www.actuary.org
A c t u a r i a l U P DAT E AU G U S T 2 0 1 8
5
Know the Facts, continued from page 1 of all kinds. Maintaining that confidence requires a process that provides multiple opportunities for input and participation. At the same time, confidence in the quality and the objectivity of actuarial standards— the output of that process—depends on the ability of the committee members to deliberate with candor, without disruption, and free of actual, perceived, or potential conflicts of interest. Balancing these needs—always with the ultimate goal of public confidence—is what drove the adoption of our current meetings policy, a balance that the petition currently circulating would upend. Experience has demonstrated that knowledgeable guests contribute greatly to the development of actuarial standards. But it has also demonstrated that disruptions and conflicts of interest can interfere with that process. We welcome guests at our meetings, in some cases as observers and in others as participants. To protect the essential ability to have confidential and candid deliberations, chairpersons have reason-
Most fundamentally, it is important for Academy members to know that since the policy revision guests have continued to observe at both ASB and ASB pension committee meetings and will undoubtedly continue to do so. The Academy’s commitment to transparency remains unchanged. able discretion in their consideration of potential guests. For example, they may consider whether the guest has a conflict of interest or may be seeking inside information, whether the guest has a prior history of disruption or other misconduct (such as publishing notes from the meeting online), or, in what we expect will be rare cases, are suing or have threatened to sue the Academy.
But those situations are likely to be the exception, not the rule. Our goal is inclusion, not exclusion, as continued guest attendance demonstrates. It is also important to remember that the exposure process allows many more opportunities for public participation beyond attendance at meetings. So we urge you not to support either the petition or the bylaw amendment it advocates. Our meetings policy, together with the robust and longstanding standards-setting process that includes meaningful disclosure and public participation, provides the orderly transparency essential to achieving our most important mission: public confidence in our profession, and in the professionalism of actuaries who work in the pension and insurance systems that depend on us. If you signed the petition because you mistakenly believed that attendance at ASB meetings was totally forbidden or wish to withdraw your signature for any other reason, you may email us at knowthefacts@actuary.org.
P/C VP Musulin Offers Professionalism, Public Policy Outreach
V
ICE PRESIDENT OF CASUALTY Rade Musulin pre-
sented an Academy public policy and professionalism overview and update to approximately 90 actuaries and actuarial students attending the Farm Bureau Actuarial Conference in New Orleans on Aug. 6. Musulin provided an overview of the Academy and its professionalism and public policy work.
Academy Facilitates Multidisciplinary Dialogue on Big Data
D
OROTHY ANDREWS, vice chairperson of the Acade-
my’s Big Data Task Force, moderated a distinguished panel of subject matter experts on Big Data Aug. 2 at the Joint Statistical Meetings (JSM) in Vancouver, British Columbia, on “Big Data: Ethical and Professional Challenges from the Perspective of Actuaries, Data Scientists and Statisticians.” The panel, organized by the Academy, highlighted the task force’s June monograph, Big Data and the Role of the Actuary. The JSM—a joint international conference of 10 statistical associations—had more than 6,500 participants this year. www.actuary.org
A c t u a r i a l U P DAT E AU G U S T 2 0 1 8
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IN THE NEWS Lori Lucas, moderator at the Pension Practice Council’s (PPC) July 27 Modernizing the U.S. Retirement System Forum, discussed the key takeaways from the event in The Weekly Pulse podcast (11:30 mark). Lucas also discussed the importance of the forum in an Employee Benefit Research Institute blog post. The blog post was reprinted by Advisor Magazine. An Employee Benefit News article on the forum cited comments from Academy Pension Vice President Josh Shapiro and Senior Pension Fellow Ted Goldman. In an interview with the Retirement Income Journal, Goldman discussed aspects of ideas presented at the forum, specifically multiple employer retirement plans. The Washington Examiner cited Academy Senior Health Fellow Cori Uccello’s comments on the implications of expanding short-term, limited-duration health insurance. AIS Health cited comments from Uccello on
new Center for Consumer Information and Insurance Oversight guidance aimed at preventing the practice of silver-loading premiums from increasing costs for non-subsidized enrollees. Delta County Independent (Colo.) cited comments from Uccello on association health plans (AHPs). In a joint letter to congressional conferees to the Agriculture and Nutrition Act (H.R. 2 and S. 3042), by 19 interested party organizations requesting they reject including in that conference agreement an Agricultural AHP provision, cited the Individual and Small Group Markets Committee’s issue brief on AHPs. A column published in the Glenwood Springs Post Independent (Colo.) noted the Academy’s analysis on AHPs. A Health Affairs blog post cited the Individual and Small Group Markets Committee’s April comment letter to the U.S. Department of Health and
Human Services that highlighted the potential implications of expanding short-term, limited-duration health insurance. A story published by Actuaries Digital cited the Big Data Task Force’s monograph, Big Data and the Role of the Actuary. An Illinois News Network story noted the PPC’s analysis that pension plans should have the objective of accumulating assets equal to 100 percent of a relevant pension obligation. The article was reprinted by the Northwest Herald (Ill.). A Think Advisor story noted the Academy’s involvement in updating the NAIC Life Insurance Buyer’s Guide, which aims to help consumers understand how life insurance works. An Insurancenewsnet. com article cited the Life Illustrations Work Group’s comment letter to the NAIC’s Life Insurance Illustration Issues Working Group on draft
changes to Model #582. In a report on the NAIC Summer 2018 Annual Meeting, JD Supra cited the C1 Work Group’s comment letter on alternative C1 bond factors for different levels of statutory reserve offset. A Hudson Valley 360 (N.Y.) advice column cited the Actuaries Longevity Illustrator, developed jointly by the Academy and the Society of Actuaries. Inman News and Water Canada reported on the Academy’s jointly sponsored Actuaries Climate Index, which provides a quarterly gauge of changes in extreme weather events and sea levels. An opinion piece in the Voice of San Diego noted the Actuarial Standards Board’s proposed revision of Actuarial Standard of Practice No. 4, Measuring Pension Obligations and Determining Pension Plan Costs of Contributions.
Register Now
S R Y A M IN E M D E A C S
NOVEMBER
Life and Health Qualifications Seminar NOV. 4−8, 2018 | ARLINGTON, VA. Acquire the necessary qualifications to sign statements of actuarial opinion for NAIC life and health annual statements.
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A
A c t u a r i a l U P DAT E AU G U S T 2 0 1 8
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NEW Academy Members
I
N THE FIRST HALF OF 2018, the Academy welcomed 687 new members, compared with 443 for
the same period the previous year. The new members’ average age is just over 30, and about 35 percent are women. The majority of the new members, 431 (about 63 percent), are employed by an insurance organization or organizations serving the insurance industry, down from 70 percent a year earlier. There are 236 (about a third) working as consulting actuaries, up from 28 percent. The remaining 20 members identified as miscellaneous, government service, or other, including five who listed no category. Health was the most popular area of practice (336), followed by life (130), property/casualty (100), pension (63), and risk management (15). Thirty-six listed other, and seven gave no category. Matthew P. Aaronson
Menachem Blum
Karen M. Casatelli
Kevin J. Daugherty
Benjamin L. Fitzpatrick
Seth D. Adamson
Erik J. Bolda
Jordan J. Cates
Joseph M. Dean
Christine E. Foltz
Gilbert Adongo
John F. Boorack
Liam F. Cavadini
Brittany P. Deaton
Andrew J. Ford
Jamal J. Adora
Evgueni Borisenko
Ryan E. Cereghino
Daniel Delany
Karl Michael W. Forsman
Maria E. Aguayo
Clint Borka
Paul C. Chae
Nicholas B. Dermes
Mikaela J. Foster
Andrew Y. Aksyonov
Jennifer L. Bostedt
Caroline R. Chambers
Amanda K. Desotell
Paige E. Fox
Gnuikan T. Allade
Kristin B. Boulware
Catherine T. Chan
Kyle L. Despain
Mark A. Franklin
Richard T. Allen
Gregory M. Boyd
Ling Hong Chan
Ian N. Deters
Brian M. Freeborn
David Allwine
Adam J. Braithwaite
Jennifer K. Chancey
Joseph J. Diani
Aimee R. Fried-Hardy
Janis J. Anderson
Andrew H. Brantley
Justin M. Chang
Eamon P. Dick
Virginia L. Fritz
Karley F. Andrews
Alexandra E. Bray
Yizhe Cheah
Julian W. Dickenson
Terry R. Fuller
Ashley L. Anthony
Jeffrey T. Brea
Joseph Chen
Ryan A. Dickson
Michael J. Gallenberg
Ajith Antony
Laura H. Bret
Wei Chen
Kyle T. Diederichs
Gina N. Ganab
William D. Appman Jr.
Benjamin M. Britzius
Robert A. Chin
Brian M. DiIorio
Jane R. Gardner
Isabella F. Archibald
Ryan A. Brown
Sara E. Chiodi
Matthew J. diStefano
Edward J. Armentrout
Samuel J. Brown
Seulki Choi
Kyle E. Dolisi
Ernest R. Armijos
Scott D. Brown
Kyle E. Chou
Xiaochen Dong
Erick E. Arnaldo Ocadiz
Gregory W. Bruce
Justin H. Chow
Robert P. Dorman
Brian J. Babcock
Allison C. Brune
Ryan P. Cianfarani
Rebecca L. Durand
Alpha N. Bada
Khue A. Bui
Thomas R. Ciavarella
Reid B. Earnhardt
Dalesa M. Bady
Maria K. Bunner
Daniel R. Clark
Patrick C. Ecklund
Jeffrey L. Bahr
Matthew T. Bunten
Emily E. Clauss
David P. Eckrich
Megan R. Baker
John L. Butel
Bryan M. Clubb
Ashley W. Edie
Michael D. Baranow
Eric A. Buzby
Evan T. Cole
Stephen G. Edmond
William A. Barlow
William L. Byrd
Gregory D. Collins
David J. Elliott
Ryan T. Beckman
Samantha L. Caccavelli
Steven M. Coniglio
Samuel J. Ellis
Daniel Bedolla
Jeffrey A. Cai
Tiffany L. Connell
Jakob J. Erickson
Emily R. Belmonte
Dylan M. Calabretta
James R. Cooper
Tanya E. Eshel
Ryan M. Benitez
Patrick K. Calabria
Kendra A. Cooper
Justin D. Ewald
Nathan H. Benya
Pia K. Calle
Brendan T. Costello
Sean L. Fakete
Kyle A. Berillo
Laura M. Campbell
Daniel S. Coulter
Andrea J. Fant
Jeffrey L. Berliss
Zac A. Campbell
Stephanie M. Crawford
Michael S. Farrell
Michaela Berry
Guojun Cao
Amy M. Crouse
James A. Fauerbach
Melissa M. Greenhill
Thomas J. Bevins
Lin Cao
Timothy M. Culbertson
Michelle A. Faust
Russell E. Greenlee Jr.
Krista G. Biernat
Sara E. Carlson
Scott A. Curran
Christopher J. Felde
Job S. Gremmer
John Bischoff
Erin E. Carrano
Brigitte Cusson
Pablo A. Feldman
Julie A. Griffin
Logan D. Bitter
Kaitlin D. Carter
Steven J. Cusumano
Diana E. Fernandez
Myriam T. Griffin
Ian T. Blaine
Jacob R. Caryl
Anthony R. Dake
Aaron F. Fezatte
Emily G. Gross
Jessica C. Blood
Jake R. Casado
Vincent H. Dang
Patryk T. Fital
CONTINUED ON PAGE 9
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CONTINUED FROM PAGE 8 Steven M. Grotzinger
Karen Hui
Kevin J. Kropp
Christopher T. Lombardi
Jason P. Miller
Yelei Gu
Michael N. Hurst
David K. Krydynski
Jillian A. Longton
Kevin T. Minish
Mathew N. Guenther
Hussain Hussain
Matthias A. Kullowatz
Justin R. Longua
Ajit Mistry
Eric C. Guerci
Caitlin R. Hutchison
Daniel R. Kuntz
Brandon C. Lord
Mubina K. Mitha
Unawatuna G. Gunathilaka
Tiffany S. Huyser
Nolan S. Kurtz
Zachary R. Luety
Phillip S. Moon
Nathaniel G. Jacobson
Eddy Kwak
Nelson S. Lund
Alex I. Moore
Josh A. Gutzmer
Alejandro L. Jensen
Wai Shan Wendy Kwan
Corey E. Lutz
Katherine O. Moore
Angela V. Hackenburg
Nathan A. Jensen
Bryan Y. Kwiatkowski
Will R. Lynch
Lacy A. Moore
Stacey N. Hagensen
Jared D. Jepson
Alba P. Laboy
Amber R. MacDonald
Mackay D. Moore
Thomas G. Haggerty
David J. Jesik
Nelson F. Lahrs
Ethan W. Machurat
Ashley A. Morcheid
Michael J. Haldeman
Xueting Jiang
Thomas S. Lai
Kevin D. Mackey
Shivkumar Morjaria
Douglas G. Hale
Brett D. Johnson
Jason D. Lam
Xiao Mai
Kevin J. Morris
Jackson Hall
Erica D. Johnson
Marshall M. LaMoyne
John C. Maier
David S. Muir
Coty W. Hallay
Kevin P. Johnson
Eric J. Lanier
Saira Makhani
Daniel Mulhern
Sarah K. Hamel
Jill C. Jones
Alexander Larionov
Tatyana Malinina
Lauren M. Mulhern
Carl R. Hammer
Michelle L. Jones
Joy M. Larson
Courtney K. Mallinger
Michael J. Mulhern
Michael L. Hammer
Jason J. Jossie
Qian Y. Lasseter
Geoffrey A. Malott
Sasha T. Musat
Joanna L. Hampton
Julie M. Joyce
Katharina Lau
James R. Mans
Anthony M. Muscarello
Nicole D. Harrington
Sikander S. Kahlon
Katie G. Lau
Steven P. Marcello
David A. Myers
Jamie B. Harris
Grace C. Kang
Daniel Lawler
Justin J. Marks
Ethan F. Nappen
Joshua J. Harris
Gretchen E. Kanji
Olyvia J. Leahy
Jacob A. Marotz
Christina L. Negley
Michael T. Harris
Achal P. Kansupada
Alex W. Lee
Rachel A. Marsiglio
Andrew J. Nelson
David W. Harrison
Zachary P. Kaus
Chankyu Lee
Amanda M. Martin
Nelson Ng
Bradley A. Hart
Joseph M. Kearney
Miko Lee
Ana L. Martin
Hiuyin Ngan
Jackson H. Hatch
Tyler P. Keenan
Richard P. Leeman
Francois N. Martin
Duy M. Nguyen
Shannon R. Hatfield
Kasey R. Kelley
Jillian K. Leenay
Sophia R. Martin
Timmy-Tam T. Nguyen
Gustav Hattingh
Wendy Kelly
Andrew Lehewych
Andrew M. Martini
Connor L. Niehaus
Jack Z. He
Nathan T. Kennedy
Ashley P. Leineweber
Joseph J. Martschinke
Jacqueline A. Nix
Leah Herbstman
Ethan H. Kim
Elizabeth H. Lennox
Melissa N. Masek
Kevin T. Noelke
Sara F. Herrick
Misu Kim
Edward D. Lesher
Daniel B. Massey
Andrew W. Nordbye
Olivia M. Hessling
Alexander W. King
Patrick T. Lesiewicz
Robert D. Mathews
Dustin B. Hevener
Hans F. Kist
Yik Yi Leung
Kassandra N. Matrese
John W. Hildebrand
Charles M. Klabunde
Jeremy S. Levin
Kristen A. Mattson
Brian A. Hingst
Alexander M. Klassen
Boting Li
Thomas R. Mazzotti
Zachary E. Hixon
James W. Kline
Jiaqi Li
Sonya R. Mbatchou
Robert M. Hofer
Peter W. Klinner
Mengran Li
Devin C. McCall
Theodore E. Hoffman
Jessica M. Knarian
Yiai Li
Reilly A. McGarr
Mackenzie N. Hoge
Jonathan M. Ko
Qiuli Liang
Nicholas A. McGovern
Lauren E. Holladay
Richard C. Koch Jr.
Xiaoyu Liang
Kelsey McGowan
James H. Hollman
Christina M. Koehler
Zizhu Liang
Cody L. McGuiness
Kathryn L. Holmes
Gregory Kogut
Matthew P. Lichty
Dustin R. McMath
Jeong Y. Hong
Alan S. Kolick
Briza M. Ling
Joshua McPhee
Stephanie D. Horst
Andrew C. Kopling
Andrew D. Link
Shumaila Merchant
James C. Horvath
Matthew T. Korienek
Zachary J. Linn
Nichole M. Merritts
Emily D. Hossley
Dmitriy Korogodskiy
Brittany J. Lisman
Scott Hovest
Alan A. Korovin
Luyao Liu
Alexandra S. Mertens-Goossens
Danyan Huang
Yelena Korshak
Peijuan Liu
Steven P. Meyer
Emily L. Pastor
Tiffany T. Huang
Rebecca M. Kovach
Shihua Liu
Sarah Michener
Nura Patani
Christopher S. Hughes
John G. Kowalik
Wei Liu
Nicholas B. Mihalyi
Dushyant J. Pattni
Andrew Huh
Joseph M. Kropiewnicki
Te Yong Liu Wong
Blaine M. Miller
CONTINUED ON PAGE 10
www.actuary.org
Anthony M. Noti Carol K. Nugent Kyle F. Nyskohus Pierce B. O’Donnell Timothy C. Oakes Terese S. Ohl Reona Oishi Lukas L. Olson Erol E. Onat Xingyu Pan Yue Pan Russell Yan Wei Pang Lena Panok Matthew K. Papke Michael V. Paradiso Brian S. Parkinson
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CONTINUED FROM PAGE 9 Allen L. Pauly
Rebecca L. Ross
Avtar Singh
Kurtis J. Thompson
Ziruo Wang
George Pavlis
Luke B. Roth
Rohit Sinha
Elizabeth M. Thooft
Erin E. Watts
Taylor M. Peltier
Michael J. Rothschild
Christopher E. Skaggs
Brandon C. Thornton
Alyson J. Weber
Rebecca L. Peot
Remington D. Rotthaus
Eric B. Skirvin
Justin Z. Thunell
Jacqueline C. Weiss
Max L. Perkins
Nicholas R. Rowe
Nathan C. Skupny
Tian Tian
Julia C. Welton
Brendan D. Perry
Jamison H. Ruben
Benjamin J. Sloan
Robert T. Tieman
Sida Wen
Ryan J. Pestka
Adam J. Rudolph
Gittel Small
David J. Tighe
Lucas M. Wendt
Scott D. Peters
Brian J. Rush
Lindsay K. Smeltzer
Micah W. Todd
Jack P. Wesson
Nicole E. Pettis
Rachel M. Rush
Victoria Smiley
Samantha M. Toepfer
Stanley W. Westrom Jr.
Amy E. Phillips
Nicole L. Russo
Albert C. Smith
Benjamin B. Tolzmann
Brittani M. Weyenberg
Jennifer M. Piazza
Keith M. Rycek
Christopher D. Smith
Tyler L. Tomczak
Nathan T. White
Kevin P. Pierce
John R. Sabatino
Eric M. Smith
Andrew L. Top
Mary E. Whitley
Ian J. Pietz
Hannah J. Sackfield
Harrison A. Smith
Jonathon T. Townsend
Alex D. Wiegmann
Jordan D. Pilgrim
Alexander E. Sadowski
Nathan A. Smith
Okasate Traore
Alexandria J. Wilhelm
Katherine A. Pipkorn
Allison M. Salisbury
Casey M. Smolka
Jacqueline E. Trapp
Grant B. Wilken
Alec M. Pirritano
Anton Salmin
Alexei A. Smolko
Karolina M. Trzaska
Sebastian P. Polczynski
Tyler J. Santa
Kathleen M. Snajder
Hsiang-Yi Tseng
Samantha M. Pollack
Alexander J. Santiago
David R. Snyder
Filiz Tumel
Jacob R. Poots
Thomas M. Sauder
Rachel L. Soich
Elizabeth N. Turner
Kylin S. Poropat
Jonathan D. Sauer
Jacquelyn R. Spears
Cody J. Tyler
Sarah A. Poserina
Paul A. Scaggs
Anthony M. Stachowski
Richard C. Tyson
Anwesha Prabhu
Jarred W. Scheese
Travis A. Stanton
Tiffany C. Valdecantos
Brett T. Prather
Joseph G. Schiazza
Caitlin M. Stark
Joseph P. Valdez
Kristiana N. Preus
Kerry L. Schnaufer
Gretchen D. Stasica
Rebecca A. Vallera
John W. Priester
Margaret L. Schneider
Timothy B. Stawicki
Canaan J. Van De Mark
Helaine A. Proschansky
Luke C. Scholl
Callen J. Stefanick
Lucas M. Vander Berg
Mathew G. Provencher
Matthew C. Schreckenberger
Zachary I. Stenberg
Alexander S. Vanos
Henry R. Stender
Carrie F. Vaughn
Peter B. Schultz
Chelsea E. Stewart
Samuel L. Vaughn
Xuejiao Qian
Tyler J. Schulze
Jaime E. Stoddard
Maxime Veilleux
Li Qin
Joseph W. Seaborn
Jeanne C. Stokke
Mariya Verba
Zuyun Qin
Timothy B. Seifert
Sherry R. Stoll
Mercedes A. Vetter
Syed M. Rahman
David E. Seitz
Gregory K. Stone
Andres E. Vilms
Preneshan J. Ramaloo
Yutaro Seki
Joseph W. Storm
Eric J. Vis
Christian J. Rans
Anne E. Sells
Peter O. Storvick
Daniel L. Vollmer
Benjamin Rascher
Kyle D. Sewright
Emily G. Stuber
Anthony J. Voto
Christopher J. Young
Bryan A. Rask
Annoria L. Shah
Sam Su
Smita R. Wacker
Eric Yu
Alison K. Rexroat
Jesnie G. Shah
Di M. Sun
Spencer G. Wade
Kiu Chor Yuen
Cami J. Reyes
Lucas M. Shapland
Tyler W. Sutherland
Tylor C. Wagner
Bethany C. Zack
Aubrey N. Rickey
Maggy Sharobeem
Andrew D. Swan
Jacy S. Waldrop
Tyler J. Zentz
Elena P. Ripp
Aaron M. Shatzer
Rachel Tabi
Sean P. Walsh
Guowen Zhang
Colin M. Rizzio
Kelly M. Shaw
Alexander Tall
Eric J. Walters
Xiao Yu Zhang
Julie K. Robinson
Taylor A. Shaw
Ruiyu Tan
Derek R. Walton
Elaine Y. Zhao
Rafael Rocha Da Costa
Zachary A. Shealy
Michael P. Tarpey
Biqiao Wang
Ye Zhao
Alex L. Rocheleau
George P. Shugart
Khurram Taufiq
Hai Yan Wang
Zhiyuan Zhou
Jordan K. Roeder
Dev Shukla
Daniel M. Taylor
Jingpu Wang
Jieyu Zhu
David C. Ronning
Daniel A. Simenc
Joseph P. Testa
Juanjuan Wang
Anthony W. Zimmer
Tyler A. Rosacker
Anthony C. Simms
Jeffrey A. Thalberg
Waverly Wang
Adam D. Zimmerman
Andrew J. Rosenbaum
Katherine J. Simon
Pradeep K. Thapliyal
Yanan Wang
Eric J. Zimmerman
Jennifer A. Ross
Dylan R. Simpson
Anne-Laure M. Theall
Zhiwei Wang
Hui Zou
Samuel F. Provenzano-Heal
www.actuary.org
Courtney Williamson Ryan E. Wilson Anna M. Winkler Fennon B. Wisseh Rachel L. Wolf Stephen E. Wolff Kai Wu Yue Wu Jialing Xu Alex Shiyue Yang Lu Yang Yu-Hsien Yang Lucy G. Yeatman Kristy M. Yenerall Siew Ming Yeo Jingting Yi Xiao Yi James M. Yonz Philip J. York
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P rofessionalism N ews
October Professionalism Webinar to Look at ASOPs
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HE ACADEMY WILL HOST A PROFESSIONALISM
webinar in October that will examine and dissect the actuarial standards of practice promulgated by the ctuarial Standards Board to explain the key concepts that A
keep actuarial practice healthy, appropriate, and compliant with the Code of Professional Conduct. “The Anatomy of the ASOPs” will be held on Oct. 17, from noon to 1:30 p.m. EDT. Registration will open soon.
PUBLIC DISCIPLINE NOTICE The following was posted to the Academy’s Public Discipline page on Aug. 20, 2018.
Notice of Public Discipline The American Academy of Actuaries, acting in accordance with the Academy’s Bylaws, and after consideration by a Disciplinary Committee and an Appeal Panel, has reviewed the findings and a recommendation from the Actuarial Board of Counseling and Discipline (ABCD) regarding Timothy W. Sharpe. Based on the decision of the Disciplinary Committee, which the Appeal Panel affirmed, the Academy suspends Mr. Sharpe from membership for a period of two years for materially failing to comply with Precepts 1, 3, 4, 10, and 14 of the Code of Professional Conduct in connection with valuations he performed for several municipal police and fire pension plans in Illinois. Precept 1 requires that an actuary “act honestly, with integrity and competence, and in a manner to fulfill the profession’s responsibility to the public and to uphold the reputation of the actuarial profession.” Annotation 1-1 amplifies that duty by requiring an “Actuary to perform Actuarial Services with skill and care.” The Disciplinary Committee and Appeal Panel concluded that Mr. Sharpe materially violated Precept 1 on these valuations in the following respects: • Making inappropriate adjustments to published mortality tables for these valuations in violation of ASOP No. 35; • Failing to disclose adequately in www.actuary.org
his valuation reports the mortality tables used and the modifications to them in violation of ASOP No. 41. Precept 3 requires an actuary to “ensure that Actuarial Services performed . . . satisfy applicable standards of practice.” The Disciplinary Committee and Appeal Panel concluded that Mr. Sharpe materially violated Precept 3 by failing to satisfy ASOP No. 35 and ASOP No. 41 on his valuations for several municipal pension funds, as noted above. Precept 4 provides that an actuary issuing “an Actuarial Communication shall take appropriate steps to ensure that the Actuarial Communication is clear and appropriate to the circumstances and its intended audience, and satisfies applicable standards of practice.” The Disciplinary Committee and Appeal Panel concluded that Mr. Sharpe materially violated Precept 4 by issuing valuation reports for several municipal pension funds that do not comply with ASOP No. 41, as noted above. Precept 10 provides that an actuary “shall perform Actuarial Services with courtesy and professional respect and shall cooperate with others in the Principal’s interest.” Annotation 10-5 amplifies that obligation by noting in pertinent part that “[w]hen a Principal has given consent for a new or additional actuary to consult with
an Actuary with respect to a matter for which the Actuary is providing or has provided Actuarial Services, the Actuary shall cooperate in furnishing relevant information” to the new or additional actuary. The Disciplinary Committee and Appeal Panel concluded that Mr. Sharpe materially violated Precept 10 by failing to furnish relevant information to a successor actuary on a valuation for the Village of Oak Brook, Illinois Firefighters Pension Fund. Precept 14 requires subject actuaries to respond promptly, truthfully, and fully to communications from the ABCD and its counsel. The Disciplinary Committee and Appeal Panel concluded that Mr. Sharpe materially violated Precept 14 by failing to cooperate in scheduling an interview with the ABCD investigator and by failing to respond to alternative dates and locations that the ABCD proposed for his hearing. Based upon the foregoing, Mr. Sharpe’s membership in the Academy is suspended for two years. At the conclusion of the two-year period, if Mr. Sharpe wishes to resume his Academy membership, he must undergo professionalism counseling from the ABCD resulting in a recommendation from the ABCD for reinstatement.
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Applicability Guidelines: Which ASOPs Apply?
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Plan Contributions; promulgates new actuarial standards of practice SS No. 52, Principle-Based Reserves for Life Products under (ASOPs), but also reviews and revises existing ASOPs. the NAIC Valuation Manual; This is perhaps why, in addition to the actuary’s professional SS No. 53, Estimating Future Costs for Prospective Property/ responsibility to observe applicable ASOPs laid out in PreCasualty Risk Transfer and Risk Retention; and cept 3 of the Code of Professional Conduct, Annotation 3-1 SS No. 54, Pricing of Life Insurance and Annuity Products. also requires actuaries “to keep current regarding changes After the release of each new or revised ASOP, the relin the standards.” evant Academy practice council updates the Applicability The Academy’s Council on Professionalism has develGuidelines to show to which tasks the new or revised stanoped an online tool that is not a substitute for the ASOPs but dard of practice likely applies. For example, the Health Praccan help practicing actuaries stay abreast of the ASOPs and tice Council updated the guidelines this past June for ASOP meet these obligations: The No. 42. Of the new ASOPs, Applicability Guidelines can Nos. 51, 52, and 53 have already help an actuary to initiate been incorporated into the After the release of each new an analysis of which ASOPs guidelines, and the Life Pracor revised ASOP, the relevant are applicable to particular tice Council is working on an assignments and to keep update to reflect ASOP No. 54. Academy practice council current with new and revised That update should be released updates the Applicability ASOPs so that you can focus this fall. your attention. For assignments that touch Guidelines to show to which The Applicability Guideupon more than one practice tasks the new or revised standard area, an actuary might wish to lines do not provide guidance, as ASOPS do. The review the tabs for all relevant of practice likely applies. guidelines come in the form practice areas. For example, for of a downloadable Excel work related to long-term care spreadsheet, with a separate that involves life and health tab that covers each practice area. Each tab lists common aspects, an actuary may want to review both the life and assignments in that practice area and the ASOPs that usuhealth tabs of the guidelines. ally apply to each assignment. At the top of each tab, the Do you have to use the Applicability Guidelines? The guidelines remind actuaries that ASOPs Nos. 1 (Introductory answer is a firm “no.” While the Applicability Guidelines are ASOP), 23 (Data Quality), and 41 (Actuarial Communicaregarded as useful, they are not binding on any actuary. The tions) apply to every assignment—a clue that every actuary guidelines are not published by the ASB, and therefore are should know these cross-practice ASOPs very well. For ease not authoritative and do not constitute binding guidance. of access, the guidelines include a link to each ASOP listed. The ultimate responsibility under Precept 3 of the Code Recent exposure drafts are included on the last tab to give for identifying which standards apply to an assignment actuaries an idea of what the ASB may be considering for a belongs—as it should—to you, the individual actuary. particular ASOP. As part of its mission to serve the public and the U.S. The Applicability Guidelines are updated whenever actuarial profession, the Academy provides the most the ASB adopts a new or revised ASOP. In the past year, recent Applicability Guidelines, updated by members of for example, the ASB has not only revised two ASOPs—No. the Academy practice councils on the Academy website 17 (Expert Testimony by Actuaries) and No. 42 (Health free of charge to everyone, not just Academy members. and Disability Actuarial Assets and Liabilities Other Than Use of the Applicability Guidelines might not be mandaLiabilities for Incurred Claims)—but also released four tory, but why not try to see whether it helps you comply brand-new ASOPs: with Precept 3 of the Code? We hope that you find the SS No. 51, Assessment and Disclosure of Risk Associated with Applicability Guidelines helpful and that you will spread Measuring Pension Obligations and Determining Pension the word among your colleagues.
HE ACTUARIAL STANDARDS BOARD (ASB)
www.actuary.org
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C asualty N ews
Actuaries Climate Index Fall 2017 Data Released
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HE FIVE-YEAR MOVING AVERAGE of the Actuaries Climate Index (ACI)—co-sponsored
by the Academy, the Canadian Institute of Actuaries, the Casualty Actuarial Society, and the Society of Actuaries—reached 1.19 in fall 2017, a new record, according to data released Aug. 1. The seasonal ACI value increased to 2.00 from the previous level of 1.59, and the five-year moving average from the previous record of 1.14. “Increased precipitation and continuing rising sea levels drove Actuaries Climate Index values for the United States and Canada higher in fall 2017,” said Doug Collins, chair of the Climate Index Working Group. The elevated moving-average and seasonal index values reflect continued deviation of climate and sea level extremes from historically expected patterns for the two countries.
CLRS to Be Held in Early September in Southern California
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Committee Comments on Calif. Workers’ Comp Rules
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HIS YEAR’S Casualty Loss Reserve
Seminar and Workshops (CLRS), sponsored jointly by the Academy and the Casualty Actuarial Society (CAS), will be held Sept. 5–7 at Anaheim Marriott Hotel in Anaheim, Calif. Visit the event website for the program guide, lodging details, and more. Pre-registration is now closed—please register with the CAS staff in Anaheim, or call 703-276-3100 with questions.
HE COMMITTEE ON PROPERTY AND LIABILITY FINANCIAL REPORTING sent a comment letter to the California Department of Insurance on proposed changes
to reporting requirements for large deductibles workers’ compensation plans. The letter made comment and recommendations on proposed regulation relating to the impact on annual statement schedules, implementation impact, and credit risk. ISTOCK / ANDREA_HILL
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HE ACADEMY WILL HOST A
webinar, P/C Public Policy Update— Fall 2018, on Tuesday, Sept. 25, from noon to 1 p.m. EDT. Included will be P/C issues covered by the Academy at the NAIC Summer 2018 National Meeting in Boston in early August.
CASUALTY BRIEFS
➥ Kevin Conlee, Charles Marshall, Michael Bayard Smith, and Jeri Xu have joined the P/C Extreme Events and Property Lines Committee. ➥ Brandon Gilbert has joined the Practice Note Subcommittee of COPLFR. www.actuary.org
Earn Valuable CE at Seminar on Effective P/C Loss Reserve Opinions
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HE ACADEMY WILL HOST ITS ANNUAL Seminar on Effective P/C Loss
Reserve Opinions, Dec. 6–7, in Chicago. The two-day seminar will provide participants who prepare—or assist in preparing—annual statements of actuarial opinion on P/C loss reserves with information about the latest regulations and standards and includes reviews of actuarial qualification standards and interactive case studies. In addition, the seminar will offer attendees the opportunity to: SS Gain an understanding of regulatory perspectives and expectations; SS Keep up to date on the latest regulations and standards; and SS Network with your peers. An agenda at a glance, available online, provides an overview of what topics will be covered during the seminar. Attendees will have the opportunity to earn up to 13.8 hours of continuing education credit. Register today.
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Sept. 25 Fall P/C Policy Webinar to Recap NAIC Meeting Issues
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H ealth N ews
Academy Comments on Final Short-Term, Limited-Duration Insurance Rule
A
CADEMY SENIOR HEALTH FELLOW CORI UCCELLO made public comment on the final rule
released Aug. 1 by the Trump administration on shortterm, limited-duration (STLD) insurance, noting that higher Affordable Care Act (ACA) premiums will likely result if younger and healthier individuals move away from and opt for ACA-compliant coverage. Read the A cademy alert. “Lengthening the maximum allowable duration of STLD insurance, especially in conjunction with the elimination of the individual mandate penalty, will likely lead to some younger and healthier individuals moving away from ACA-compliant coverage and opting for short-term coverage,” Uccello said. “Higher ACA premiums will result.”
HEALTH BRIEFS
➥ Colleen O’Malley Driscoll is chairperson of the new Mental Health Parity Work Group, and the following actuaries are members of the work group: Alec Breckenridge, Joe Korabik, Donna Novak, Rebecca Owen, and Adam Reese.
➥ Gabriela Dieguez, Kate Foucault, Robert Garbus, John Schubert, and Josh Sober have joined the Medicare Subcommittee.
➥ Shiwen Jiang has joined the Joint P&C/Health Bond Factors Analysis Work Group.
P ension N ews
Academy Testifies Before ERISA Advisory Council
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HE ACADEMY TESTIFIED Aug.
15 before the U.S. Department of Labor’s (DOL) Advisory Council on Employee Welfare and Pension Benefits (the ERISA Advisory Council, or EAC) on “Lifetime Income Solutions as a Qualified Default Investment Alternative (QDIA)—Focus on Decumulation and Rollovers.” Senior Pension Fellow Ted Goldman presented to the council and, accompanied by Tonya Manning, co-chairperson of the Academy’s Lifetime Income Risk Joint Task Force, then
responded to questions. The written testimony and presentation are posted on the Academy’s website. EAC Chair Cynthia Levering, an active Academy volunteer, is a member of the Academy’s Lifetime Income Risk Joint Task Force and the Retirement System Assessment and Policy Committee. The testimony highlighted the Academy’s lifetime income position statement, provided insights about Qualifying Longevity Annuity Contracts (QLACs), and described an Open Retiree Multiple
Employer Plan (MEP) concept. In addition, attention was brought to the full body of issue briefs and related deliverables developed by the LITF, the Actuaries Longevity Illustrator, and the Academy’s online lifetime income quiz.
Treasury, Labor, and PBGC Meeting Notes Released
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HE MULTIEMPLOYER
Plans Committee released notes from its February meeting with officials of the Departments of Treasury and Labor departments and the Pension Benefit Guaranty Corporation to discuss applications by multiemployer pension plans in critical and declining status to suspend benefits or partition liabilities. This meeting supplemented the first meeting between these parties on this topic, which was held in 2017. (L-R) Goldman, Levering, and Manning at the EAC www.actuary.org
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L ife N ews
COMMUNICATIONS REVIEW COMMITTEE
Tom Campbell, Chairperson Shawna Ackerman Steve Alpert Bob Beuerlein Laurel Kastrup Rade Musulin Dave Neve Josh Shapiro Shari Westerfield Tom Wildsmith D. Joeff Williams EDITOR
Michael G. Malloy
Task Force Comments to NAIC on Life and Health Valuation Law Manual
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HE ACADEMY’S LIFE AND HEALTH VALUATION LAW MANUAL Task
Force submitted a comment letter to the NAIC Life Actuarial (A) Task Force as a follow-on from its presentation at the NAIC Summer Meeting in Boston outlining recommended changes to the 2019 Life and Health Valuation Law Manual.
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Actuarial Update
ASSISTANT DIRECTOR OF COMMUNICATIONS | PUBLICATIONS
Eric P. Harding
LIFE BRIEFS
DESIGN AND PRODUCTION
BonoTom Studio Inc. DESIGNER
Christopher Specht PUBLICATIONS AND MARKETING PRODUCTION MANAGER
➥ Paul Navratil has joined the Life Practice Council and the C2 Work Group. ➥ Chris Trost has joined the Longevity Risk Task Force. ➥ Nadeem Chowdhury has joined the Annuity Reserves Work Group. ➥ Chuck Ritzke has joined the PBA Projections Practice Note Work Group.
Laurie Young
American Academy of Actuaries PRESIDENT
Steve Alpert PRESIDENT-ELECT
Shawna Ackerman SECRETARY-TREASURER
Tom Campbell VICE PRESIDENTS
Laurel Kastrup Rade Musulin Dave Neve Josh Shapiro Shari Westerfield D. Joeff Williams EXECUTIVE DIRECTOR
Mary Downs DIRECTOR OF COMMUNICATIONS
David J. Nolan EXECUTIVE OFFICE
The American Academy of Actuaries 1850 M Street NW Suite 300 Washington, DC 20036 Phone 202-223-8196 Fax 202-872-1948 www.actuary.org Statements of fact and opinion in this publication, including editorials and letters to the editor, are made on the responsibility of the authors alone and do not necessarily imply or represent the position of the American Academy of Actuaries, the editors, or the members of the Academy. ©2018 The American Academy of Actuaries. All rights reserved.
www.actuary.org
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